Stock market today: The Nifty 50 and Sensex, the primary domestic indices, experienced a decline on Thursday, April 9, reversing after a notable increase in the previous trading day, as renewed conflicts in the Middle East muddied prospects for a sustainable ceasefire between Iran and the US.
At 11:38 IST, the Nifty 50 fell by 0.62% to 23,851 . 15, while the Sensex decreased by 0.77% to76,966.49.
On Wednesday, both indices had increased by around 4% each, driven by a decrease in oil prices following the establishment of a ceasefire between the United States and Iran, which sparked a rally in global markets.
Investor sentiment turned cautious after Iran announced it would be “unjust” to pursue negotiations with Washington following Israel’s most severe bombardment of Lebanon on Wednesday.
Conflicting signals prior to the planned US-Iran talks on Saturday, along with Tehran’s warning of possible retaliation, increased fears that the ceasefire could just be a temporary pause.
Market Views – Nagaraj Shetti, Senior Technical Research Analyst of HDFC Securities
Nifty 50
After witnessing a massive upmove on the back of Ceasefire announcement by US-Israel and Iran on Wednesday morning, the Nifty 50 shifted into a consolidation with weak bias so far Thursday. The opening sharp upside gap of Wednesday remains unfilled and this indicates a bullish breakaway gap, which are normally formed at important bottom reversals.
The near-term uptrend of Nifty 50 remains intact and present consolidation could be a buy on dips opportunity for the short term. Immediate support is placed at 23,700 and the next upside targets to be watched around 24,300.
Buy JM Financial at ₹131, Target ₹141, Stoploss ₹126, Timeframe 1 week
After shifting into a consolidation phase in last week, the financial stock price has witnessed sharp breakout in the last couple of sessions. Currently, placed at the edge of breaking above the hurdle of down sloping trend line around ₹132-133 on the weekly timeframe chart. The volume has started to expand during upside breakout in the stock price and daily 14 period RSI shows positive indication.
Buy Canara Bank at ₹140, Target ₹150, Stoploss ₹135, Timeframe 1 week
The PSU banking stock has moved up sharply this week after the formation crucial bottom reversal pattern in early part of April. The stock price has bounced back above the hurdles like 200day EMA and 10/20-day EMA on the daily chart. The volume and daily RSI pattern signals more upside for the stock price ahead.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
